the marginal cost curve first declines and then increases because of: |
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increasing then diminishing marginal returns |
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the vertical distnace between atc and avc meaures |
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average fixed cost |
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atc: |
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afc+avc |
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when the marginal cost curve lies |
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above the atc curve ATC rises |
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the unlabled red curve in this figure illustrate |
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short run average total cost curves of plant sizes available to a particular firm |
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the unlabled red curves in this figure derive thier shapes from |
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increasing, then decreasing short run returns |
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the long run ATC curve in this figure derives it shape from |
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economies, then diseconomies of scale |
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the long run atc curve is oftern called the firms |
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planning curve |
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which of the following is an assumption underlying these figures? |
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workers are of equal quality |
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marginal product is |
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the change in total product divided by the change in the quantity of labor |
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marginal product in graph B. is zero when |
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the slope of the total product curve in graph a is zero |
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average product in graph b. |
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rises when it is less than marginal product |
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